E.1 PURCHASING
Policy:
The Red River Valley School Division recognizes that the purchasing, receiving, storing and distribution of necessary supplies, equipment and services for use in the educational program and for the various auxiliary services represent a significant expenditure in the Division’s budget and believes that these items must be procured efficiently and economically. The Board of Trustees declares its intention to purchase competitively without prejudice and to seek maximum educational value for every dollar expended.
Protocol:
The measure of efficient, economical purchasing is the degree to which the right items are provided in the right quantity to the right place at the right time and at the right price.
Divisional purchasing is divided according to the cost of the item being purchased (including PST and GST). Purchases have been divided into the following categories:
$50,000 and over Mandatory Tender (as per Public Schools Act)
$10,000 to $49,000 Quotations
$2,000 to $9,999 Preapproval (authorized signature) from Administration Office
* Under certain conditions, the Superintendent & CEO and/or the Secretary-Treasurer may request quotations or tenders for items that do not fall into the tender or quotation categories.
Procedures:
1.1 MANDATORY TENDERS
All expenditures for the provision of goods and/or services exceeding $50,000.00 shall be subject to public tender and/or advertising. Should a purchase in excess of $50,000.00 be financed through a lease, such transactions shall also be subject to this tender process. It shall be recognized that exceptions to this policy may be made as follows:
- Where the goods must be compatible with existing equipment; or
- When an emergency situation is deemed to prevail.
1.2 TENDER FILE
A file shall be developed for every tender and will contain at least the following:
- copy of the tender advertisement;
- general and specific conditions of the tender;
- tender forms submitted by tenderers;
- a concise summary of tenders;
1.3 TENDER ADVERTISEMENTS/DOCUMENTATION
1.3.1. ADVERTISEMENT
All tender advertisements shall be over the name and title of the Secretary-Treasurer or his/her designate. Where information regarding specifications or any other matter are best provided by another staff person that person’s name and title shall be included in the public advertisement.
1.3.2. DOCUMENT REVIEW
When a department other than the Secretary-Treasurer's has occasion to tender any of its requirements, all documents (general conditions, specifications, drawing, bid sheets) related to such tenders shall be referred to the Secretary-Treasurer or designate for scrutiny and approval prior to the legal advertisement of the tender and the circulation of documents.
1.3.3. SUPPLIER LISTS
Opportunity shall be provided to suppliers to do business with the Division. To this end, the Secretary-Treasurer’s department shall develop and maintain lists of potential suppliers for the various types of materials, equipment, and services. Such supplier lists shall be used in the development of a mailing list for distribution of specifications and tenders. Any supplier may be included in the list upon request.
1.4 TENDER CUSTODY/REVIEW
1.4.1. TENDER CUSTODY
Prior to the closing time for receiving tenders, the Receptionist shall be responsible for the receipt and the physical control of tenders. Following the closing time for any tender, tender forms shall be turned over to the person supervising tender evaluation and award.
1.4.2. TENDER REVIEW
Following the closing date and time for tenders originated by staff members other than the Secretary-Treasurer, a meeting shall be convened with that person to review tenders received and to determine an appropriate tender award.
1.4.3. BOARD APPROVAL
All tenders shall be submitted to the Board of Trustees for its approval. Tenders may be submitted for board approval by administration or by a standing committee of the Board. In certain circumstances, the Board may empower a standing committee to award a tender on its behalf without its prior approval. However the awarded tender will be reported to the board for its information.
1.5 QUOTATIONS
1.5.1 QUOTATION REQUIRED
Where goods and/or services are not subject to tender and are anticipated to cost in excess of $10,000.00 but less than $50,000.00, formal written quotations shall be obtained from a standing list of interested vendors. Wherever possible, a minimum of three quotations should be obtained.
1.5.2 EXEMPTIONS FROM QUOTATIONS
The requirement to obtain quotations will not arise when the following conditions are met:
- where the goods must be compatible with existing equipment; or
- where an emergency situation is deemed to prevail.
2.1 REQUISITIONING
For items not subject to tender or formal quotation each school or department shall be responsible for initiating orders by submitting purchase orders to the division office for signature and transmittal to the vendor, for items $9,999.00 or less. Once approved, the purchase order is returned to the school. The school is responsible for placing the order.
2.2 TENDERS/QUOTATIONS REQUIRED
The Superintendent & CEO, Assistant Superintendent or Secretary-Treasurer may require tenders or quotations to be obtained for expenditures, which are less than $5,000.00. Please refer to Section 4.2.1 for information relative to making commitments at the school level.
The order of precedence for signing purchase orders shall be the Secretary-Treasurer followed by the Assistant Superintendent or the Superintendent & CEO. It is recognized that either of the incumbents in these positions may designate the principal or other divisional personnel, to perform this task if the expenditure is under $2,000.00. Any such authorization must be approved, written and filed by the Superintendent & CEO or Secretary-Treasurer.
- SITE/DEPARTMENT BASED COMMITMENTS (Confirmation Order)
3.2.1. DOLLAR LIMIT/EXCLUSIONS
Generally, schools, departments or authorized employees may make commitments to vendors or service providers for goods or services having a maximum cost, including all applicable taxes, of $ 2,000. The Superintendent & CEO or Secretary-Treasurer may exclude certain purchases from being eligible to be made from this limit. In these circumstances, written advice of such exclusions will be provided.
3.2.2. OVEREXPENDITURES
Authorization to sign purchase orders will be removed from schools or departments, who do not demonstrate prudent fiscal management. Such notice shall be given in writing.
- COMPLETION OF PURCHASE ORDERS
Purchase order shall include the following essentials:
- A specification which adequately describes to the supplier the characteristics and the quality standards of the item required.
- A firm quoted, net, delivered price, whenever possible.
- Clear delivery instructions, including place and time.
- Signature of authorized persons.
- Budget account code number.
- ISSUANCE OF PURCHASE ORDER
The Secretary-Treasurer, Superintendent & CEO or designate are authorized to issue purchase orders when all or any of the following circumstances have been met:
- Where formal tendering procedures required by policy or Provincial statutes have been fulfilled;
- When budget appropriations are adequate to cover such obligations.
Staff persons issuing purchase orders or making commitments under the provisions of the policy shall refrain from taking measures that would result in an over expenditure of the related budget. Circumstances necessitating the issuance of a purchase order exceeding budget availability must be reviewed and approved by either the Superintendent & CEO or Secretary-Treasurer and reported to the Board.
When leases/contracts are being contemplated for purchases described under 3.2.1, they will be divided into those for which the School Administrator shall be responsible for reviewing and executing as signing officer and those for which the Secretary-Treasurer shall be responsible for reviewing, arranging for any lease to purchase and executing by the Superintendent & CEO and Secretary-Treasurer.
Those leases / contracts for which the School Administrator shall be responsible (as per paragraph one of section 4.3) are those that are non-renewable and must not contain any “lease to purchase” option. Some examples of these types of leases / contracts are: Jostens, Artists in the School, Fundraising (Bothwell’s, pizza, chocolates) and PD costs (speakers, accommodations, etc.).
Those leases / contracts for which the Secretary-Treasurer and Superintendent & CEO shall be responsible for (as per paragraph one of section 4.3) are those which are part of the normal course of operation, automatically renewable, and those which contain a “lease to purchase” option. Some examples of these types of leases / contracts are: Photocopiers (including “Cost Per Copy” agreements), Telephone Systems (including cell phone agreements).
Contracts that are not routine in nature such as Joint Use Agreements, purchase or sale of land etc. must be brought forward the board at a regular meeting and, upon approval, be signed by the Division’s signing authorities.
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